Do you and your partner fight about money? Or do you avoid talking about your finances? Many couples sidestep the subject out of fear. Yet money may be the single most important topic in a relationship. This story can help other couples find their way to a brighter financial future.

Coming together, right now
Veronica Chambers, freelance writer and writer-in-residence at Princeton University, 31, and Jason Clampet, a Web site editor and soon-to-be graduate student, 27

Marital status: Engaged
Income: $75,000 to $100,000
Expenses: $7,163 a month, including saving $1,100 a month for their June wedding
Major assets: Jason owns a house, which he rents out
Debt: Jason carries a $67,000 mortgage on his house and $8,000 in credit card debt
Biggest worries: Meeting expenses when he goes to school in 2003; learning to live with different spending and saving styles

Creating a Joint Account
Veronica and Jason are starting out on two exciting new ventures at the same time. They are about to get married, and the following year, Jason begins full-time graduate studies in architecture. They asked me how they could make ends meet while he's in school and still create an equal financial partnership. But when I looked at their finances and talked to them, I realized that their questions were less about dollars and cents than about feelings: Jason's secret fear that he can't control his spending habits; Veronica's unspoken concern of sacrificing too much for the marriage while Jason is in school.

Credit Card Debt
Jason and Veronica are incredibly smart and capable. When they first met two years ago, he already owned a house, while Veronica had paid her own way through college and was already a successful writer. But, both were in debt: Jason still owes $8,000 on a credit card with a high interest rate, and Veronica had credit card debt, student loans and back tax debt totaling about $23,000. "When I saw how responsible Jason is, that he even owned a home, she says, "I promised myself I'd get it together." When she says "I do," she'll be debt-free.

To lower the rate on Jason's credit card debt and turn his interest payments into a tax deduction, (interest paid on credit cards is not deductible) I suggested he look into refinancing his house at today's mortgage rates. If he refinances his 30-year, $67,000 mortgage, currently at 7.5 percent, into a 15-year, $75,000 mortgage at 6 percent, he will be able to pay his credit card debt with the extra money from the mortgage, he will own his home outright in 15 fewer years, and, since he won't be writing a check for the $550 he is currently paying each month on his credit card, he will be saving more than $300 every month that he can put toward his and Veronica's living expenses.
Please note: This is general information and is not intended to be legal advice. You should consult with your own financial advisor before making any major financial decisions, including investments or changes to your portfolio, and a qualified legal professional before executing any legal documents or taking any legal action. Harpo Productions, Inc., OWN: Oprah Winfrey Network, Discovery Communications LLC and their affiliated companies and entities are not responsible for any losses, damages or claims that may result from your financial or legal decisions.

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